Term deposits are an effective tool for Aussies to protect their capital and still generate pleasing interest income. But, I think certain ASX shares could be a more appealing option for passive income.

ASX shares do come with higher risk than a term deposit because share prices can drop. But, share prices can rise too – they can deliver potential gains.

Today, I want to focus on why both of the following businesses could be better options than term deposits.

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop is a leading retailer of male and female grooming products such as electric shavers, clippers, trimmers and wet shave items.

On the dividend side of things, the business increased its payout each year between 2017 (when it started paying cash to shareholders) and 2023. The company maintained its dividend in 2024 and then increased its payout in 2025. Dividends aren’t guaranteed, of course.

Term deposits provide consistent payouts without cuts or growth, while Shaver Shop has delivered payments with growth in all but one year (with no cuts along the way).

The business paid an annual dividend per share of 10.3 cents per share. At the current Shaver Shop share price, that translates into a grossed-up dividend yield of 10.2%, including franking credits.

I’m optimistic the business can continue growing its profit, and therefore the payouts, by expanding its store count (beyond the current 125), growing its own brand called Transform-U, gaining more exclusive products from top shaving brands and benefiting from the ASX share’s scale.

Rural Funds Group (ASX: RFF)

Rural Funds is another pleasing option for passive income compared to term deposits, in my view. It’s a real estate investment (REIT) that owns farmland across Australia in different states and climatic conditions.

It owns cattle, almonds, macadamias, vineyards and cropping, giving the business pleasing diversification and reducing risks. This strategy also means it can search across a wide array of assets to find the best opportunity in terms of the combination of income and long-term growth.

The business increased its distribution each year between 2014 to 2022. It has maintained its payout each year since then, despite the headwinds of higher interest rates. It has guided that it’s going to pay the same amount in FY26, which translates into a future distribution yield of 5.75%.

I think its payout can grow in the coming years as its rental income grows – its farms have rental growth built-in, with either fixed annual increase or the growth is linked to inflation.

It’s trading at attractive value, in my opinion, and I think it’s a good, defensive option to own for the long-term.

The post Forget term deposits! I’d buy these two ASX shares instead appeared first on The Motley Fool Australia.

More reading

• Where I’d invest $10,000 into ASX dividend shares right now
• A 5.8% yield and 30% undervalued — time for me to buy this ASX 300 passive income star?
• Two undervalued agriculture ASX shares to add to your Christmas stocking
• 3 ASX dividend shares to buy with $20,000 in 2026
• 3 excellent Australian dividend shares to buy with $1,000

Motley Fool contributor Tristan Harrison has positions in Rural Funds Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended Shaver Shop Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Are you on the hunt for some ASX dividend shares to buy in December?

If you are, analysts think the two named below could be worth considering. Here’s what they are saying about them:

Amcor (ASX: AMC)

Amcor could be an ASX dividend share to buy now according to analysts at Bell Potter.

It is a global packaging company that produces a wide variety of flexible and rigid packaging solutions for consumer, healthcare, and other markets.

The broker is feeling bullish on the company’s outlook thanks to its transformative merger with Berry Global. As well as making the business less cyclical, Bell Potter believes this merger leaves it well-positioned for a period of significant growth. It said:

The investment thesis for Amcor is based on its transformative merger with Berry Global, which positions the company for a period of significant growth and quality improvement. The merger is expected to drive two years of double-digit EPS growth, fuelled by an estimated $590 million in synergies, with 80% anticipated to be realised within the first 24 months.

Beyond the near-term earnings growth, the merger also creates a more resilient and less cyclical business by increasing its exposure to the defensive home & personal care and pharmaceutical sectors.

In respect to income, the consensus estimate is for dividends of 78 cents per share in FY 2026 and then 80 cents per share in FY 2027. Based on its current share price of $12.73, this would mean dividend yields of 6.1% and 6.3%, respectively.

Bell Potter has the company in its core portfolio with a key overweight rating “due to its valuation discount and post-merger growth prospects.”

Flight Centre Travel Group Ltd (ASX: FLT)

Over at Morgans, its analysts are bullish on travel agent giant Flight Centre and think that it could be an ASX dividend share to buy in December.

The broker believes it is worth sticking with the company through tough trading conditions because when the tide finally turns, it thinks the upside could be material for investors. Commenting on the company, Morgans said:

FLT’s FY25 result was broadly in line with its recent update. Corporate was weaker than expected while Leisure and Other were stronger. FLT’s guidance for a flat 1H26 was stronger than we expected however it was weaker than consensus. Earnings growth is expected to accelerate in the 2H26 from an improvement in macro-economic conditions and internal business improvement initiatives. We have made minor upgrades to our forecasts.

We are buyers of FLT during this period of short-term uncertainty and share price weakness because when operating conditions ultimately improve, both its earnings and share price leverage to the upside will be material.

With respect to dividends, Morgans is forecasting fully franked dividends of 52 cents per share in FY 2026 and then 61 cents per share in FY 2027. Based on the current Flight Centre share price of $15.41, this would mean dividend yields of 3.4% and 4%, respectively.

Morgans currently has a buy rating and $18.38 price target on its shares.

The post Why experts say these growing ASX dividend shares are top buys for income appeared first on The Motley Fool Australia.

More reading

• Here’s the earnings forecast out to 2030 for Flight Centre shares
• Top brokers name 3 ASX shares to buy next week
• Buy, hold, sell: Flight Centre, Suncorp, and Zip shares
• Top brokers name 3 ASX shares to buy today
• Why Flight Centre shares could return 22% in just one year

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Owning Flight Centre Travel Group Ltd (ASX: FLT) shares has been an incredibly volatile time over the past decade, as the chart below shows.

Flight Centre is a major travel agent business for both consumers and corporates. It has a global presence including Australia, New Zealand, the UK, Canada, South Africa, the US, Hong Kong, China, Singapore and UAE.

COVID-19 significantly disrupted Flight Centre’s earnings and now the company’s earnings has returned following a recovery in travel as well as a few targeted acquisitions. Let’s take a look at analyst forecasts for the business. Could profit growth help send the Flight Centre share price higher?

FY26

The business recently acquired a cruise leisure business called Iglu, increasing its exposure to that growing segment – it now represents around $2 billion of total transaction value (TTV) for the company. Iglu is the leading cruise agency in the UK, according to UBS.

UBS said its preliminary analysis suggests “5%-6% EPS [earnings per share] accretion in FY27/FY28, assuming cruise grows at 7%” per annum.

This should help the ASX share’s margins as Iglu comes with an operating profit (EBITDA) to total transaction value (TTV) margin of 3.1% compared to 2.2% for the Flight Centre leisure segment, with another £12.1 million of expected synergies within two years.

If Flight Centre manages to achieve its cruise ‘stretch target’ of $3 billion in FY28, UBS predicts this would increase the forecast FY28 net profit after tax (NPAT) by another 6%.

However, a shift in the outlook for Australian interest rates since the AGM, creates a “more challenging outlook for the leisure business.” But, the outlook for additional new business wins within the corporate segment has “arguably increased” and ongoing productivity initiatives “should continue to drive efficiency improvements”.

UBS predicts EPS could rise at a compound annual growth rate (CAGR) of 18% between FY26 to FY29.

The broker notes that Flight Centre increased its underlying profit before tax (PBT) guidance by $10 million to $315 million to $350 million for FY26.

Owners of Flight Centre shares could see their business generate $230 million of net profit in FY26, according to UBS, putting the valuation at 14x FY26’s estimated earnings.

FY27

UBS projects that the business could generate $281 million of net profit in the 2027 financial year as the situation plays out as the broker expects, which I covered above.

FY28

In the 2028 financial year, Flight Centre’s net profit is projected to increase to $330 million, representing another double-digit increase in percentage terms.

FY29

Profit growth could start slowing down in the 2029 financial year, according to the forecast from UBS.

In FY29, Flight Centre’s earnings could rise to $361 million.

FY30

In the 2030 financial year, owners of Flight Centre shares could see the net profit improve to $385 million.

If that happens, it would mean a possible rise of net profit of 67% between FY26 and FY30.

The post Here’s the earnings forecast out to 2030 for Flight Centre shares appeared first on The Motley Fool Australia.

More reading

• Why experts say these growing ASX dividend shares are top buys for income
• Top brokers name 3 ASX shares to buy next week
• Buy, hold, sell: Flight Centre, Suncorp, and Zip shares
• Top brokers name 3 ASX shares to buy today
• Why Flight Centre shares could return 22% in just one year

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX 200 stocks are sometimes perceived as offering more modest returns (and risk) to their blue-chip status.

However, at the time of writing, there are roughly 17 companies inside the ASX 200 that doubled in value so far in 2025. 

Many of these have enjoyed tailwinds from global commodity prices. 

This goes to show that even large-cap companies can deliver significant upside.

While there is still a couple of weeks left in 2025, here are two that are on track to double this calendar year. 

Perenti Global (ASX: PRN)

Perenti Global is a mining services company offering surface and underground mining solutions. It provides exploration drilling, production drilling, blasting, and geotechnical services.

In January of this year its shares were trading at $1.44 each. 

Last week, this ASX 200 stock closed at $2.94. 

That represents a rise of more than 104%. 

For context, the S&P/ASX 200 Materials (ASX: XMJ) is up roughly 27% in the same period. 

Key wins this year included a $300M Dalgaranga contract with Ramelius Resources Ltd (ASX:RMS) in September. 

The contract awarded Parenti Limited’s underground mining business, Barminco, a four-year contract for underground mining services at the Dalgaranga Gold Project. 

Financially, the company posted solid growth, which included for FY25: 

• Revenue of $3.5 billion jumped by 4% from previous year, with operating earnings (EBITDA) of $668 million rising by the same amount.
• Its EBIT margin strengthened to 9.6% (up from 9.4% in FY24).
• Underlying net profit after tax (NPAT) of $178.4 million also grew by 8%.
• Final dividend of 4.25c/share declared, taking total FY25 dividends to 7.25c/share (up from 6c/share in FY24). 

Monadelphous Group Ltd (ASX: MND)

Monadelphous Group is an engineering company that provides construction, maintenance, and industrial services to the mining, energy, and infrastructure sectors. 

At the start of 2025, shares were trading for approximately $14. 

Last week, shares closed at $26.40, which represents a rise of almost 90%. 

This ASX 200 stock is up approximately 97% in the last 12 months, so while it hasn’t quite doubled this year, it could pass this benchmark by new years. 

At last month’s AGM, management attributed this year’s success to multiple factors, including the record $2.3 billion of secured new work, with $570 million secured post year end major wins in energy, iron ore and renewables. 

Do these soaring ASX 200 stocks still have upside?

After almost doubling in such a short span, investors may be interested if there is further upside for these stocks. 

In a recent note out of Morgans, the broker placed a $29.00 price target on Monadelphous Group shares. 

This indicates a further upside of 9.85%. 

For Perenti Global, it appears it is trading close to fair value. 

TradingView has an analyst price target of $2.93, while an older report from Bell Potter had a 12 month price target of $2.80. 

The post Investors likely doubled their returns with these ASX 200 stocks in 2025 appeared first on The Motley Fool Australia.

More reading

• This ASX 200 gold stock has surged 77% in 2025. Here’s why Macquarie expects it to leap another 23%
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Guzman y Gomez Ltd (ASX: GYG) shares ended the week 5.96% higher at the close of the ASX on Friday afternoon, at $22.06 a piece.

The jump has helped to recover some of the fast food retailers’ recent share price losses, albeit there is a long way to go before the stock returns to peak levels. Over the past 6 months, GYG shares have tumbled 24.5%. They’re now trading 46% below the share price this time last year.

What’s happened to Guzman y Gomez shares?

There was no price-sensitive news out of the company last week. Friday’s uptick could imply that investor sentiment about the stock is shifting, although it could be investors shorting the stock in anticipation of more declines.

Investors have gradually lost confidence in Guzman y Gomez shares this year following its two disappointing earnings updates.

In August, the restaurant operator reported its FY25 results. It revealed a 23% year-on-year increase in global reported sales. It also recorded a 45.5% increase in EBITDA, and a 151.8% surge in net profits after tax (NPAT). 

But investor optimism was dented by news of the comparable sales growth numbers in Australia. The company’s Australian business, which includes operations in Singapore and Japan, achieved 9.6% comparable sales growth, $1,168 million in network sales, and $66 million in segment underlying EBITDA. 

The company also revealed that its sales had risen just 3.7% in the seven weeks since 30 June, which was sharply below the 7.6% growth expected by the market. 

Earlier in the year, the Mexican fast-food service operator also posted disappointing H1 FY25 results. Whilst overall network sales rose 22.8% to $577.9 million, sales in the United States fell 12.7% to $4.9 million. Sales in the Australia segment rose 9.4% to $573 million. 

Guzman y Gomez was also recently listed as one of the most shorted stocks on the ASX, approximately 13.2%, of its shares loaned out to hedge funds that are betting on the price to fall, according to data from the Australian Securities and Investments Commission. This is another week-on-week increase. Valuation concerns are likely to be behind this. Especially given the disappointing performance of its US business, which was seen as a key driver of long term growth. It is now the third most shorted stock in the market.

Is there any chance of an upside ahead?

Analyst sentiment about Guzman y Gomez shares appears to be shifting to be more positive. TradingView data shows that out of 10 analysts, 4 have a buy or strong buy rating on the stock and 4 have a hold rating. The remaining 2 have a sell or strong sell rating.

Interestingly, analysts think the share price has the potential to storm higher over the next 12 months. The average target price is $27.95, which implies a potential 26.7% upside ahead, at the time of writing. However, some expect the share price could climb as high as $36, which would translate to an impressive 63.19% increase from the current trading price.

Earlier this month, the team at Morgans reiterated a buy rating and $32.30 price target, believing the fast casual Mexican chain can bounce back. The broker said that GYG launched a new limited-time offer (LTO): the BBQ Chicken Double Crunch (BBQ CDC). Early feedback suggests the item is one of Guzman y Gomez’ more indulgent menu items and taste tests have been overwhelmingly positive.

Analysts at Macquarie initiated coverage on the stock in October with a price target of $31.10. The broker said Guzman y Gomez’s current share price weakness is an attractive entry point for investors. Combined with bold expansion plans, Macquarie thinks the business can deliver strong earnings growth through to FY30. 

It looks like the latest share price spike could be the sign of things to come. Therefore, today could be a great opportunity to buy shares on sale before it takes off.

The post 6% spike on Friday: Are Guzman y Gomez shares getting ready to soar? appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 shares that could be top buys for growth
• Here are the top 10 ASX 200 shares today
• These are the 10 most shorted ASX shares
• These ASX 200 shares could rise 50% to 65%
• Why Brazilian Rare Earths, Fenix Resources, Flight Centre, and Guzman Y Gomez shares are storming higher today

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX dividend stock GQG Partners Inc (ASX: GQG) has fallen close to 30% since its February 2025 peak, as the chart below shows. Despite its strong rise since November 2025, I think it could still be undervalued at this level.

GQG is a fund manager that’s headquartered in the US, but it also has a geographic presence in a number of other markets including Australia, the UK and Europe.

The ASX dividend stock offers four main strategies for investors – US shares, global shares, international shares (excluding US shares) and emerging market shares.

There are a couple of reasons why I think the ASX dividend stock could still be a solid, underrated buy.

Low earnings multiple

Fund managers normally trade on a lower price/earnings (P/E) ratio compared to other sectors, but I think GQG’s P/E ratio is particularly depressed.

The business regularly reports to investors about its funds under management (FUM), which is the key factor for generating profit because nearly all of its earnings are based on management fees rather than performance fees.

GQG regularly pays a large dividend to investors each quarter. In October, it declared a quarterly dividend of 5.6775 Australian cents, which was 90% of the company’s estimated third-quarter distributable earnings. That implies the GQG share price is only trading at 7x annualised earnings.

If the business can grow its earnings, it could be undervalued at this level.

Additionally, with such a low earnings multiple and such a high dividend payout ratio (of 90%), it can provide investors with a strong return through cash payments. Based on the latest quarterly dividend, it has an annualised dividend yield of 12.6%, at the time of writing.

If the business is able to maintain its dividend over the next 12 months, that level of passive income alone could outperform the S&P/ASX 200 Index (ASX: XJO).

Performance turnaround?

For a fund manager, the performance of its funds is key. GQG’s funds have recently underperformed due to taking a defensive position in an expensive market.

But, recently some of those high-flyers have gone backwards, and if GQG can own the right stocks going forwards it could lead to regaining client confidence and hopefully a slowing of FUM outflows (or even inflows).

In November 2025, the ASX dividend stock reported that its FUM grew by $2.4 billion to $166.1 billion, despite experiencing net outflows of $2.4 billion.

Prior to 2025, GQG had a long-term record of outperformance across its main strategies and I think the investment team have the skills to rediscover that track record.

The post 1 ASX dividend stock down 30% I’d buy right now appeared first on The Motley Fool Australia.

More reading

• At 13.4%, this ASX 200 dividend stock has the largest yield on the index
• Why Cogstate, European Lithium, GQG Partners, and Lindian Resources shares are falling today
• GQG Partners share price in focus after November FUM update
• $20,000 in savings? Here’s how you can use that to target an $8,000 yearly second income
• 2 cheap Australian shares under $50 to buy this December

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Gqg Partners. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Sometimes, boring is beautiful. This ASX dividend share doesn’t sell flashy tech, mine lithium or promise AI-fuelled riches.

What Metcash Ltd (ASX: MTS) does offer is something many investors are craving right now: a chunky dividend yield, a modest share price and a business model built to grind on, even when times are tough.

The price of the ASX dividend share took a tumble in the past month with 14% to $3.28 at the time of writing. This year it has lost 5.5%, compared to a 5.7% gain for the S&P/ASX 200 Index (ASX: XJO).

At current levels, Metcash shares look more appealing than exciting — and that’s precisely the point.

Dividend drawcard

Metcash sits behind some of Australia’s most familiar retail brands. It’s the wholesaler powering independent supermarkets under the IGA banner, as well as foodservice businesses, liquor retailers and hardware chains such as Mitre 10 and Home Timber & Hardware.

The biggest drawcard is the dividend. Metcash has built a reputation as a reliable payer, and its dividend yield looks attractive compared with many larger ASX names that have either trimmed payouts or failed to grow them meaningfully.

With the share price sitting at relatively low levels, that yield looks even more compelling at 5.5%. Investors aren’t paying up for blue-sky growth — they’re being paid to wait. In a market still jittery about interest rates and consumer spending, that steady income stream matters.

Squeezing suppliers, cautious shoppers

Let’s be clear, Metcash is not a growth rocket. It operates in fiercely competitive markets, with supermarket giants constantly squeezing suppliers and shoppers watching every dollar. If consumer spending weakens sharply, volumes can come under pressure.

Metcash won’t make you rich overnight. But at a low share price, with an appealing dividend yield and solid long-term prospects, it’s doing exactly what many ASX investors want right now. The ASX dividend share is paying them reliably while keeping risk in check.

Increasing dividend payouts

UBS projects the ASX dividend share to increase its payout every year between FY25 to FY29. That could be great news for investors focused on passive income.

Early December, the company highlighted that its latest dividend will be worth 8.5 cents per share. It will come fully franked, as the payouts from Metcash tend to do.

This dividend matches last year’s interim payout, but it is lower than the 9.5 cents per share final dividend investors enjoyed back in August.

What next for the ASX dividend share?

Most analysts also predict moderate to strong upside from Metcash’s current share price with the maximum potential upside at 43%.

The average 12-months price target has been set at $3.93, which suggests a share price gain of almost 20%. That could lift total Metcash earnings, including dividends, past the 25% mark.  

The post Time to buy this ASX dividend share now it’s down 14% appeared first on The Motley Fool Australia.

More reading

• Two ASX 200 stocks with buy recommendations from Ord Minnett
• Why Austal, Fenix Resources, Metcash, and Polynovo shares are falling today
• This retail stock could deliver healthy double-digit returns after a steep fall this week
• Macquarie slashes price target on Metcash shares as price plunge continues
• Here’s how much the new Metcash dividend is worth

Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With markets still feeling a bit uneasy and plenty of stocks well off their highs, I’ve been spending more time looking for quality rather than chasing momentum. In my experience, some of the best opportunities show up when strong businesses fall out of favour for reasons that are often temporary.

Right now, 3 ASX shares stand out to me as top-quality companies trading at prices that look far more attractive than they did a year or two ago.

A global healthcare leader trading at a rare discount

CSL Ltd (ASX: CSL) is trading at levels I rarely see for a business of this quality. With the share price around $175, the stock is back near prices from several years ago, despite the company being larger and more diversified today.

The pullback has been driven more by frustration than fundamentals. Currency headwinds, cautious guidance and heavy investment across the group have weighed on short-term earnings, pushing investor sentiment lower.

What hasn’t changed is the strength of CSL’s core franchises. Demand for immunoglobulin therapies continues to grow globally, while Seqirus has become a more meaningful contributor to earnings over time.

CSL is also coming out of a major investment phase, which should support better operating leverage as growth normalises. For a business with global scale, strong cash generation and a long track record of compounding value, the current valuation looks difficult to ignore.

A dominant tech platform the market has cooled on

WiseTech Global Ltd (ASX: WTC) is another high-quality name that has fallen sharply out of favour. After trading near $130 earlier this year, the share price has slid to around the $70 mark.

The pullback reflects slower near-term growth, softer freight volumes and ongoing investment in product development and acquisitions. While this has pressured margins in the short term, the long-term opportunity remains compelling.

WiseTech is still the clear global leader in logistics software through its CargoWise platform, serving many of the world’s largest freight forwarders. Demand for digital, end-to-end logistics solutions continues to grow, and WiseTech sits right at the centre of that shift.

Several brokers believe the market reaction has been too harsh, with some price targets sitting well above current levels. If growth steadies and margins start to lift, WiseTech could rebound faster than expected.

A proven growth business that’s fallen 40%

Xero Ltd (ASX: XRO) is another quality growth stock that has taken a hit, with the share price down close to 40% from its highs, and is trading around $115.

Some of that reflects weaker sentiment across global tech, but there’s also been a broader reset in how the market values software businesses. With higher interest rates and a tougher macro backdrop, investors have shifted their focus away from pure growth and towards profitability and cash flow.

That shift could actually suit Xero over time. The business produces predictable, recurring revenue, retains customers well, and has shown it can lift pricing as the platform grows. As the customer base matures, earnings should continue to improve even without rapid growth.

Xero is also building more automation and AI into the platform to reduce admin for small businesses and accountants. That should help keep customers engaged and support higher-value services over time.

Several brokers still see upside from here, suggesting the market may be underestimating Xero’s margin potential as it scales. For a business that dominates cloud accounting in multiple regions, the current valuation looks very attractive.

Foolish takeaway

CSL, WiseTech and Xero are very different businesses, but they share one thing in common: they are high-quality companies trading well below levels investors were happy to pay not long ago.

None are without risk, but for investors willing to take a longer-term view, I think all three look like compelling opportunities at today’s prices.

The post Why I think these 3 ASX shares are top-quality buying at today’s prices appeared first on The Motley Fool Australia.

More reading

• Could these ASX ETFs be set for a rebound in 2026?
• Why I’d buy dirt-cheap ASX shares now and aim to hold them for a decade
• Where will CSL shares be in 5 years?
• Why experts think the Xero share price could rise 70% in 2026!
• 3 unstoppable ASX shares to buy with $3,000

Motley Fool contributor Aaron Teboneras has positions in CSL and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week on a positive note. The benchmark index rose 0.4% to 8,621.4 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market looks set for a good start to the week following a strong finish to the last one on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 41 points or 0.45% higher. In the United States, the Dow Jones was up 0.4%, the S&P 500 rose 0.9%, and the Nasdaq stormed 1.3% higher.

Oil prices charge higher

It could be a decent start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices charged higher on Friday night. According to Bloomberg, the WTI crude oil price was up 0.9% to US$56.52 a barrel and the Brent crude oil price was up 1.1% to US$60.47 a barrel. Traders were bidding oil prices higher after Donald Trump wouldn’t rule out a war with Venezuela.

Quarterly rebalance

This morning, a number of ASX 200 shares will leave the benchmark index after being kicked out at the quarterly rebalance. Leaving the index this morning are the likes of Bapcor Ltd (ASX: BAP), HMC Capital Ltd (ASX: HMC) and Corporate Travel Management Ltd (ASX: CTD). Joining the index this morning are stocks including Aussie Broadband Ltd (ASX: ABB), Resolute Mining Ltd (ASX: RSG), and Silex Systems Ltd (ASX: SLX).

Gold price rises

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good start to the week after the gold price pushed higher on Friday night. According to CNBC, the gold futures price was up 0.5% to US$4,387.3 an ounce. Rate cut optimism gave the gold price a boost.

Buy Boss Energy shares

Bell Potter thinks that investors should be buying Boss Energy Ltd (ASX: BOE) shares after their sell off. This morning, the broker has reaffirmed their buy rating on the uranium producer’s shares with a reduced price target of $2.00 (from $2.90). It said: “Our valuation assumes production at Honeymoon over the short 10Y mine life is limited to ~1.6Mlbs pa and costs remain elevated, until such a time that management have completed the work to guide otherwise.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Bapcor shares are falling today despite a powerful 14% rebound this week
• Aussie Broadband shares sink 2% on ACCC report
• Downer EDI wins $870m NZ highway maintenance contracts: What investors need to know
• Buying Santos shares? Meet your new CFO

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband, Corporate Travel Management, and HMC Capital. The Motley Fool Australia has positions in and has recommended Corporate Travel Management. The Motley Fool Australia has recommended Aussie Broadband and HMC Capital. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Australian dividend stock Washington H. Soul Pattinson and Co Ltd (ASX: SOL) looks far too cheap to me after its fall of approximately 20% since 10 September 2025, as the chart below shows.

There are not many businesses as old as Soul Patts on the ASX – it has already been listed for 120 years.

I’d say there are plenty of reasons to believe the business will continue to be an excellent ASX dividend share for decades to come, for both passive income and capital growth.

There are a few reasons why I’ve made this business my largest holding and why I’m optimistic about the future.

Long-term investing

The business operates as an investment conglomerate, it makes active decisions about what to invest in.

Management has broad flexibility to invest in virtually any asset class, whether it’s a large or small business.

Thankfully, the company doesn’t need to invest with any particular time horizon in mind, unlike some active fund managers. The Australian dividend stock can be an investor, a partner, or the complete owner of the businesses/assets it invests in.

By taking a long-term approach with its own investments, Soul Patts itself is able to be a pleasing long-term investment for Aussies.

It has invested in a number of compelling areas in recent times, such as nuclear energy, agriculture, swimming schools, a funeral operator, electrification, industrial properties, building products, and more to diversify and potentially strengthen its long-term returns.

I think the business is boosting its appeal as it steadily adds to its portfolio. Its investment flexibility allows it to ensure its portfolio is future-proof by selling assets with weakening outlooks and buying into more appealing ideas.

Great dividend track record

In my view, Soul Patts is the best Australian dividend stock around. It doesn’t have the highest dividend yield. But it does have an incredible record of consistency for paying dividends.

It has paid a dividend every year in its listed life (of around 120 years) – that’s through the world wars, global pandemics, economic crashes, and various other challenges.

The business has also increased its annual ordinary dividend every year since 1998. That’s the longest dividend growth streak on the ASX and suggests to me the business is heavily focused on continuing that record of payout growth for investors, though that’s not a guarantee.

I’m expecting the business to grow its dividend in FY26, with the 2025 financial year payout of $1.03 per share translating into a grossed-up dividend yield of 4.1%, including franking credits. That’s a great starting point, in my view, and the payout could steadily grow over the coming years.

The post 1 impressively awesome Australian dividend stock down 20% to hold for decades! appeared first on The Motley Fool Australia.

More reading

• Where I’d invest $10,000 into ASX dividend shares right now
• $5,000 to invest? Consider 4 no-brainer ASX dividend shares with over 20 years of growth
• 3 Aussie passive income stocks delivering decades upon decades of dividends
• 3 great ASX shares I’m buying to become a millionaire
• 5 ASX 200 shares I’d buy with $10,000 this week

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.